Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS discontinues frozen foods. The operating results from the most recent period are: Sales Cost of goods sold Frozen Foods $ 135,000 119,000 Baked Goods Fresh Produce $ 120,000 88,000 $ 184,000 128,000 SFS estimates that store support expenses, in total, are approximately 17% of revenues. The controller says that not every sales dollar requires or uses the same amount of store support activities. A preliminary analysis reveals store support activities for these three product lines are: Activity (cost driver) Order processing (number of purchase orders) Receiving (number of deliveries) Shelf-stocking (number of hours per delivery) Customer support (total units sold) Frozen Baked Fresh Foods Goods Produce 9 47 104 10 59 132 6 0.1 B 26,000 32,000 64,000 The controller estimates activity-cost rates for each activity as follows: $84 per purchase order 105 per delivery Order processing Receiving Shelf-stocking 12.00 Customer support 0.27 per item per hour Required: 1. Prepare a product-line profitability report for SFS under the current costing system. 2. Prepare a product-line profitability report for SFS using the ABC information the controller provides. Required: 1. Prepare a product-line profitability report for SFS under the current costing system. 2. Prepare a product-line profitability report for SFS using the ABC information the controller provides. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SFS under the current costing system. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (1.e. 0.2134 should be entered as 21.34%).) Frozen Food Baked Goods Fresh Produce Operating income (loss) Operating margin (loss) % Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a product-line profitability report for SFS using the ABC Information the controller provides. (Loss amounts should Indicated by a minus sign. Round operating margin (loss) to 2 decimal places (1.e. 0.2134 should be entered as 21.34%). Round all other answers to nearest whole dollar.) Store support: Total store support cost Operating income (loss) Operating margin (loss) Frozen Food Baked Goods Fresh Produce % %